Question
Which of the following regarding interest rate risk is true? Interest rate risk refers to. A) Losses due to the possibility that future cash flows
Which of the following regarding interest rate risk is true? Interest rate risk refers to.
A) Losses due to the possibility that future cash flows may not be invested at the same rate. Factor when interest rates are lower than expected in the future.
B) Losses due to a drop in asset prices because interest rates are higher in the future.
C) Losses due to the possibility that future cash flows may not be invested at the same rate. Factor when interest rates are higher than expected in the future.
D) Losses due to a drop in asset prices because interest rates are lower in the future.
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